NEW YORK ( TheStreet) -- 1st United Bancorp (Nasdaq: FUBC) has been upgraded by TheStreet Ratings from hold to buy. The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth, compelling growth in net income, expanding profit margins and increase in stock price during the past year. We feel these strengths outweigh the fact that the company shows weak operating cash flow.
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- FUBC's revenue growth has slightly outpaced the industry average of 3.5%. Since the same quarter one year prior, revenues slightly increased by 3.5%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- 1ST UNITED BANCORP INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, 1ST UNITED BANCORP INC increased its bottom line by earning $0.15 versus $0.12 in the prior year. This year, the market expects an improvement in earnings ($0.27 versus $0.15).
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Commercial Banks industry. The net income increased by 107.7% when compared to the same quarter one year prior, rising from $0.78 million to $1.62 million.
- The gross profit margin for 1ST UNITED BANCORP INC is currently very high, coming in at 90.19%. It has increased from the same quarter the previous year. Despite the strong results of the gross profit margin, FUBC's net profit margin of 9.68% significantly trails the industry average.
- Compared to where it was a year ago today, the stock is now trading at a higher level, reflecting both the market's overall trend during that period and the fact that the company's earnings growth has been robust. Looking ahead, the stock's rise over the last year has already helped drive it to a level which is relatively expensive compared to the rest of its industry. We feel, however, that the other strengths this company displays justify these higher price levels.